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STATE OF OKLAHOMA
1st Session of the 60th Legislature (2025)
COMMITTEE SUBSTITUTE
FOR ENGROSSED
HOUSE BILL 1851 By: Schreiber and Deck of the
House
and
Gollihare of the Senate
COMMITTEE SUBSTITUTE
[ contracts - Oklahoma Fair Renewa l Act - automatic
renewal contracts - offer terms - online link -
written acknowledgement - notice of material changes
- notice of contract renewal - exceptions - unlawful
business practice - codification - effective date ]
BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:
SECTION 1. NEW LAW A new section of law to be codifie d
in the Oklahoma Statutes as Section 773 of Title 15, unless there is
created a duplication in numbering, reads as follows:
This act shall be known and may be cited as the “Oklahoma Fair
Renewal Act”.
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SECTION 2. NEW LAW A new section of law to be codified
in the Oklahoma Statutes as Section 773.1 of Title 15, unless there
is created a duplication in numbering, reads as follows:
As used in this act:
1. “Automatic renewal contract ” means a plan or arrangement in
which a paid subscrip tion or purchasing agreement is automatically
renewed at the end of a definite term for a subsequent term or on a
continuous or recurring basi s;
2. “Automatic renewal offer terms ” means the following clear
and conspicuous disclosures:
a. notification that an automatic renewal contract will
automatically renew or extend after the initial period
for a set term not to exceed one (1) year unless th e
consumer gives express written consent for a longer
renewal term,
b. a description of the cancellation policy th at applies
to the offer,
c. any recurring charges that will be charged to the
consumer’s credit card, debit card, or payment account
with a third party as part of an automatic renewal
contract,
d. the length of an automatic renewal term , or
e. the minimum purchase obligation, if any ;
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3. “Clear and conspicuous ” or “clearly and conspicuously ”
means:
a. in larger type than the surrounding text ,
b. in contrasting type, font, or color to the surrounding
text of the same size ,
c. set off from the surrounding tex t of the same size by
symbols or other marks in a manner that clearly calls
attention to the language , or
d. in the case of an audio disclosur e, in a volume and
cadence sufficient to be readily audible and
understandable;
4. “Consumer” means an individual who seeks or acquires, by
purchase or lease, any goods, services, money, or credit for
personal, family, or household purposes ; and
5. “Trial period offer” means a solicitation offering a
consumer a period of time in which to sample a product or service,
which offer is used as an inducement for the consumer to make a
purchase of the product or service or a similar product or service.
SECTION 3. NEW LAW A new section of law to be codified
in the Oklahoma Statutes as Section 773. 2 of Title 15, unless there
is created a duplication in numbering, reads as follows:
A. A person or entity that offers an automatic renewal contr act
to a consumer in this state shall:
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1. Present the automatic renewal offer terms in a clear and
conspicuous manner before the automatic renewal contract is
executed;
2. Provide the consumer with a written acknowledgment that
includes the automatic ren ewal offer terms, the cancellation policy,
and information regarding how to cancel in a manner that is capable
of being physically or electronically retained by the consumer; and
3. If the offer of an automatic renewal contract includes a
trial period offer:
a. include a clear and conspicuous explanation of the
price that will be charged and any further purchase
obligations that shall be imposed on the consumer
after the trial period ends,
b. disclose in the written acknowledgment, pursuant to
paragraph 2 of this subsection, the manner in which a
consumer may cancel the automatic renewal contract ,
and
c. allow a consumer to cancel the contract before the
consumer is required to pay for the goods or services .
B. It shall be unlawful for a person or entity that offers an
automatic renewal contract to a consumer in this state to u tilize an
online link that is presented a s part of an offer of an automatic
renewal contract, in which the online link directs the consumer to
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detailed information about the automatic renewal contract, unless
the online link:
1. Is available before a consumer elects to purchase any good
or service subject to the automatic renewal contract ;
2. Appears directly adjacent to any online link used by the
consumer to purchase any good or se rvice subject to the automatic
renewal contract; and
3. Is labeled with, or is directly adjacent to, a clear and
conspicuous disclosure that states that by purchasing the good or
service, the consumer agrees to enroll in an automatic renewal
contract.
C. A person or entity that offers an automatic renewal contract
to a consumer in this state shall provide a simple and readily
accessible mechanism for canceling an automatic renewal contract or
trial period offer, which shall be:
1. A direct online cancell ation link that is:
a. located on the website of the person or entity , within
the consumer’s account or profile, o r contained in an
electronic device or service , or an electronic
communication to the consumer, and
b. available to the consumer immediately or directly
after the consumer completes a reasonable
authentication protocol used solely to confirm that
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the consumer is authorized to make changes to the
account; or
2. An in-person mechanism for canceling an automatic renewal
contract or trial period of fer at a physical location where the
consumer regularly utilizes any goods or services that are subject
to the automatic renewal contract .
SECTION 4. NEW LAW A new section of law to be codified
in the Oklahoma Statutes as Section 77 3.3 of Title 15, unless there
is created a duplication in numbering, reads as follows:
If a material change occurs in the terms of an automatic renewal
contract that has been accepted by a consumer in this state, the
person or entity offering the automatic renewal contract shall
provide to the consumer :
1. A clear and conspicuous notice of the material change ; and
2. Information regarding cancellation of the automatic renewal
contract pursuant to Section 3 of this act.
SECTION 5. NEW LAW A new section of law to be codified
in the Oklahoma Statutes as Section 773.4 of Title 15, unless there
is created a duplication in numbering, reads as follows:
A person or entity that sells a good or service to a consumer
pursuant to an automatic r enewal contract shall notify the consumer
that the contract shall automatically renew unless the consumer
cancels the contract. The notice shall:
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1. Inform the consumer of the process of cancelling the
contract;
2. Provide clear and accurate information regarding the
identity of the sender ;
3. Provide a cancellation mechanism pursuant to Section 3 of
this act;
4. Be provided by one of the following methods:
a. physical mail,
b. electronic mail,
c. mobile phone application , or
d. text message, if such communication has been
authorized by the customer ; and
5. Be sent no fewer than fifteen (15) days and no more than
forty-five (45) days prior to the automatic renewal of the contract
when the contract has an initial term of one (1) year that renew s
for more than one (1) month.
SECTION 6. NEW LAW A new section of law to be codified
in the Oklahoma Statutes as Section 773.5 of Title 15, unless there
is created a duplication in numbering, reads as follows:
The provisions of this act sha ll not apply to:
1. A service provided by a person pursuant to a franchise
issued by a political subdivision of t he state or a license,
franchise, certificate, or other authorization issued by the
Corporation Commission;
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2. A service provided by a person or entity, or an affiliate or
subsidiary that is regulated by the Federal Communications
Commission, the Federal Energy Regulatory Commission, or the
Corporation Commission;
3. Any person or entity regulated by the Insurance Department,
or an affiliate of such person or entity;
4. A bank or bank holding company that is licensed under state
or federal law, or a subs idiary or affiliate of such bank or bank
holding company;
5. A credit union or other financial institution that is
licensed under state or fe deral law;
6. An air carrier as defined in and regulated under the Federal
Aviation Act of 1958, 49 U.S.C., Section 40101 et seq., as amended,
including the federal Airline Deregulation Act of 1978, 49 U.S.C.,
Section 41713, as amended;
7. An entity regulated by the Department of Labor under the
Alarm, Locksmith and Fire Sprinkler Industry Act ; or
8. Any newspaper qualified and authorized to publish legal or
public notices pursuant to Section 106 of Title 2 5 of the Oklahoma
Statutes.
SECTION 7. NEW LAW A new section of law to be codified
in the Oklahoma Statutes as Section 773.6 of Title 15, unless there
is created a duplication in numbering, reads as follows:
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Any violation of this act shall be enforceable exclusively by
the Attorney General and the district attorneys of this state except
when provided for in Section 761.1 of Title 15 of the O klahoma
Statutes.
SECTION 8. This act shall become effective November 1, 2025.
60-1-2013 CAD 4/24/2025 12:09:05 PM